Monson v. Commissioner
United States Tax Court
Petitioners elected to compute their tax liability for 1977 by use of the income averaging provisions under secs. 1301- 1305, I.R.C. 1954. Held in computing their base period income for 1973 and 1974 for income averaging purposes, petitioners are required to adjust their negative taxable income figures to zero in accordance with sec. 1302(b)(2), and sec. 1.1302-2(b)(1), Income Tax Regs., before adding the zero bracket amount as required by sec. 1302(b)(3).
1Opinion of the Court
OPINION
Chabot, Judge:
Respondent determined a deficiency in Federal income tax against petitioners for 1977 in the amount of $475.32. The issue for decision is whether, in computing "averagable income” for purposes of income averaging for 1977, base period income under section 13021 for any pre-1977 tax year may never be less than the applicable zero bracket amount2 (as contended by respondent) or never be less than zero (as contended by petitioners).
This case was submitted fully stipulated; the stipulation and the stipulated exhibits are incorporated herein by this reference.
When the petition…
2Cases cited3 opinions
- Crooks v. HarrelsonSupreme Court of the United States · 1930
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Tebon v. CommissionerUnited States Tax Court · 1970
3Cited by4 opinions
- Ivimey v. CommissionerUnited States Tax Court · 1984
- Gutnick v. CommissionerUnited States Tax Court · 1981
- Hay v. CommissionerUnited States Tax Court · 1982
- Monson v. CommissionerUnited States Tax Court · 1981